National combine harvester sales buck the early trend as industry plays ‘wait and see’ with demand for 2023

The nation’s agricultural machinery industry has been surprised by the continued strength of combine harvester sales in March, after $878 million was spent on combines last year, as part of the industry’s record $5.6 billion in overall sales. Tractor and Machinery Association of Australia chief executive Gary Northover said while the March tractor sales results were down 19 per cent on last year’s record figures it was a different story for combine harvesters. “Sales of combine harvesters continue to surprise with another 28 units sold in March as buyers stock up ahead of harvest season later in the year,” he said. “On a rolling 12 months basis, combine harvesters have enjoyed a second successive year in excess of 1100 units sold.” Last year 1145 combine units were sold across the country, 6 per cent up on 2021 figures, with 491 HP being the size of the average unit sold. WA recorded 357 combines sold in 2022 with most headed to the southern end of the State. Mr Northover said the combination of relatively high interest rates, increased machinery costs and some availability problems was having a dampening effect on tractor demand across the country, but it wasn’t all doom and gloom. “With the Temporary Full Expensing program due to end on June 30, there may be a spurt in sales in the coming months to come as we play a game of wait and see,” Mr Northover said. “While tractor sales figures are down across the board, this is off historically high levels and the much hoped for ‘soft landing’ appears likely. National tractor sales dropped 10 per cent in March pushing the year to date sales results 19 per cent down on last year’s record figures. South Australia, WA and the Northern Territory were the only regions to record rises in sales, but only the NT managed to exceed last year’s figures finishing 27 per cent ahead to remain 35 per cent up year to date. “South Australia recorded a big 26 per cent rise and now sits 10 per cent behind,” Mr Northover said. “WA reported a lift of 12 per cent off the back of strong sales of high HP tractors but remains 10 per cent behind last year.” The State that has seen the largest drop in sales was Victoria at 23 per cent down and 26 per cent behind year to date. New South Wales was down 16 per cent to be 25 per cent off last year’s figures. Queensland was down nine per cent and is now 13 per cent behind year to date, while Tasmania was off two per cent for the month, 15 per cent off year to date. “Not surprisingly, all machine categories remain down so far this year with the small under 40 HP (30kw) category down three per cent,” Mr Northover said. “This category, often referred to as the ‘leisure’ market is particularly sensitive to interest rate rises and this is beginning to impact.” Having seen a drop of 60 per cent in last month’s sales in the large 200 HP (150kw) plus range, it jumped eight per cent, but remains 29 per cent behind last year. Baler sales were down seven per cent in March and remain in line with last year while and sales of out front mowers continued their downward trend, off by 10 per cent for the month.